While bond yields tend to fall amid low inflation & interest rate cuts, market experts say they’ve been rising due to concerns over tax collections, fiscal deficit & potential impact of US tariffs.
For the first time in over a century, world’s largest & most liquid bond market doesn’t have an Aaa rating. Over the past decade, US govt’s fiscal metrics have deteriorated considerably.
On 2 April, US President Donald Trump announced the implementation of reciprocal tariffs on about 60 countries, escalating global trade tensions. On 9 April,...
A big source of uncertainty will be trade after Trump assumes office. However, within India, rural demand is likely to sustain momentum & inflation is less likely to be a big problem.
The rupee has been depreciating lately due to FPI outflows, dollar strength & weak corporate performance. The slide, however, is less steep compared to other emerging markets.
Rising oil prices and muted second quarter financial performance of key IT sector companies are other sources of potential volatility for Indian markets.
Overseas ownership of Indian govt & sovereign bonds has fallen to record lows. FPIs have utilised less than 25% of their investment limit in govt bonds & just 17% in corporate bonds.
Gold is holding above $1,800 an ounce after dropping for the first time in three years in 2021 as central banks globally started dialing back on pandemic-era stimulus.
With regional parties struggling to project a unified Opposition in Parliament, and no leader in Delhi able to mediate, Centre-state tensions are playing out as open conflict.
Instead of buying more Mirages outright in early 2000s, the requirement was tweaked in favour of a medium-weight, multi-role fighter with Mirage-like performance.
Pakistan not only has zero chance of catching up with India in most areas, but will inevitably see the gap rising. Its leaders will offer its people the same snake oil in different bottles.
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